An interesting new partnership was announced as one of the leading cryptocurrency intelligence companies CipherTrace partners with Schweitzer Laboratories to offer to Know Your Transaction (KYT) standards to political campaigns seeking to accept cryptocurrency contributions.
The newly established collaboration will allow political action committees (PACs) to safely accept cryptocurrencies. While PACs generally do allow crypto donations, it bears a more significant risk than credit cards, debit cards, or wire transfers.
Combing KYT Software With The Blockchain-Based Campaign Platform
CipherTrace’s “know your transaction” software will be combined with the blockchain-based 4US campaign platform of Schweitzer Laboratories to minimize risks connected with crypto donations. Thus, The CipherTrace-Schweitzer Labs technology will screen PAC’s digital wallet and make sure all the standards are met in order to remain compliant with all of the campaign finance laws and minimize reputation risk.
“Regulating cryptocurrencies in campaign finance is still a relatively new frontier, and it shares overlapping jurisdictional considerations from agencies like the Securities and Exchange Commission (SEC),” Ann Ravel, the former Chair of the FEC and Schweitzer Laboratories Advisor said. “While there is much more to come in this evolving space, I applaud Schweitzer Laboratories and CipherTrace for coming together and creating a solution that minimizes risk for committees who choose to accept crypto contributions now and in the future.”
GovTech Meets FinTech About Cryptocurrency Campaign Contributions Compliance
The private research and development gov tech company, Schweitzer Laboratories, founded by Will Schweitzer is leveraging new technologies to empower global organizations.
Cipher Trace is a leading cryptocurrency intelligence company, connecting cryptocurrencies and financial services with AML and financial crime prevention. The company’s goal is to develop the blockchain economy while defending against illicit activities.
“Blockchain-Based Transactions Are The Future”
“We’re incredibly excited to partner with CipherTrace and bring this forward-thinking capability to 4US,” Will Schweitzer, CEO of Schweitzer Laboratories said. “While less than 1% of the $14B+ raised in the federal 2020 cycle was done with crypto, we know blockchain-based transactions are the future. CipherTrace’s cryptocurrency intelligence tools help us improve the ability for committees and donors to transact crypto today while setting a new standard for mitigating risk, improving transparency, and automating compliance in campaign finance in the future.”
Dave Jevans, CEO of CipherTrace, said “In light of the AML Act of 2020 which codifies prior FinCEN guidance that cryptocurrency exchanges, wallets, and entities in the space are subject to the Bank Secrecy Act (BSA) to apply for cryptocurrency transfers in the US, we’re very pleased to partner with Schweitzer Labs to deliver compliant cryptocurrency campaign finance with full KYT.”
Stay updated on this story! Next week, we will post a longer piece developed based on our conversation with Will Schweitzer, CEO of Schweitzer Laboratories. If you are interested in blockchain-based transactions, gov tech, KYT solutions, and what is next for Schweitzer Laboratories and CipherTrace, make sure to come back next week and find out more details.